Distressing Economic News

Have you been paying attention to the latest economic news? I really wasn’t until I ran across the phrase “Quantitative Easing” in one of the forums that I read. I started looking around and found this article about Quantitative Easing: http://www.reuters.com/article/idUKTRE4BF68Q20081216 A quote from the article:

OK, the Fed is going to start doing a lot of quantitative easing. I get that, but what is quantitative easing? On the forum, they said that it was just printing money! That’s scary! Scary enough to do my own research to see if they are right. This is what Wikipedia says: http://en.wikipedia.org/wiki/Quantitative_easing. Yup, it is printing money. (Or creating electronic money, most “money” in the system is not ever printed on paper.)

So the Fed is printing money! Don’t panic yet, it could work. Just like we can have 60 degree weather in Ohio in Jan. It can happen. On the other hand, it could be the beginning of hyper inflation.